[Congressional Record Volume 147, Number 124 (Friday, September 21, 2001)]
[Senate]
[Pages S9589-S9604]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT

  The PRESIDING OFFICER. The clerk will report the bill by title.
  The bill clerk read as follows:

       A bill (S. 1450) to preserve the continued viability of the 
     United States air transportation system.

  Mr. DASCHLE. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. Who yields time?
  The Senator from Missouri, Mr. Bond.
  Mrs. HUTCHISON. Mr. President, parliamentary inquiry.
  Mr. BOND. Mr. President, I yield to the manager of the bill, the 
distinguished Senator from Texas.
  Mrs. HUTCHISON. Mr. President, are we now on the bill and into my 30 
minutes of time?
  The PRESIDING OFFICER. The Senator is correct.
  Mrs. HUTCHISON. Thank you, Mr. President. I yield 5 minutes to the 
Senator from Missouri.
  The PRESIDING OFFICER. The Senator from Missouri.
  Mr. BOND. Mr. President, I thank the Senator from Texas for yielding 
me time. Let me try to be quicker than 5 minutes.
  No. 1, while this package may not be what anyone likes, I am sure in 
this body and the other body there are probably 535 different ideas as 
to what we need to do. I hope we can come together, the House and 
Senate, and decide that we must move. I am more than willing to take 
what has been put together as an emergency measure and urge my 
colleagues to support it, and to support it without amendment.
  We are looking at a situation where the airline industry, which is a 
critical element in our economy, is right on the verge--from the 
smallest airlines that need an immediate infusion of cash to make up 
for the losses that were sustained when the Federal Government 
rightfully shut down air transportation this past week, to the current 
time where consumer concerns over safety have limited the flying 
public. We have put our entire airline industry at great risk. This 
bill is necessary if we are to solve those problems and if we are to 
get the planes back in the air.
  I can understand what my colleagues in this body and the other body 
have raised as concerns about insurance and compensation for those who 
are out of work. Let me be clear; it is not just the airline industry 
which has suffered losses. Boeing laid off 30,000 workers. I have just 
talked to people in the travel and tourism industry and consumer 
products industries. They have suffered a great downturn, and there may 
be people out of work. The good news is we have in place statutes and 
programs designed to assist those people.
  Let me be clear; if we delay passing this bill, as we attempt to 
craft a change or adjustment on assistance for laid-off employees, we 
risk causing a tremendous economic calamity.
  I understand that in the House objections over the failure to include 
relief for unemployment led to objections that put the passage of this 
package in doubt.
  Right now, we are looking at layoffs in the airline industry in the 
neighborhood of 20 to 25 percent. If we do not pass this bill, we are 
looking at 100-percent layoffs. We are looking not only at disaster for 
those people who work in the airline industry, those of us who depend 
upon airline traffic to get back to our constituents, those who depend 
upon airline travel for business, for recreation, and for tourism, but 
a risk to the entire economy. So this bill needs to be passed.
  Let me also point out that last week I was in this Chamber and I said 
that one of the key things we must include in the airline rescue 
package is a carefully crafted, structured means of providing 
compensation to the victims. There is a two-part means of providing 
compensation for the families of those who are deceased as a result of 
the accident and those who are injured. There are various provisions 
built in which would seem to make an option of two structures 
available, and there is a clear-cut indication that airlines will be 
liable only up to the limits of their existing insurance coverage.
  I thank the White House and the leadership for including those 
protections. Without them, at least two of our major airlines would not 
be able to continue in business next week. This is critically 
important, as is the provision in the measure for direct loans to those 
who can demonstrate their need to the Secretary of Transportation as 
well as loans which are to be structured by a board composed of the 
Secretary of Transportation, the Chairman of the Federal Reserve, the 
Secretary of the Treasury, and the Comptroller General. We put a great 
deal of discretion and responsibility in the hands of those very able 
officials. While none of us may have crafted the bill exactly as it was 
crafted, this is our only hope to ensure we do not have a disaster 
resulting from the total shutdown of the airline industry.
  I urge my colleagues, I beg my colleagues, to pass it.
  I return to the manager on this side any time remaining on my time. I 
thank the Chair and the Senator from Texas for their accommodation.
  The PRESIDING OFFICER (Ms. Stabenow). The Senator from Texas.
  Mrs. HUTCHISON. I will take up to 3 minutes of time now to explain 
what is in the bill, but I want to be told when 3 minutes is up because 
I will lose the remaining 30 minutes to other people.
  The PRESIDING OFFICER. The Chair will notify the Senator.
  Mrs. HUTCHISON. Madam President, the Air Transportation System 
Stabilization Act is the effort of the U.S. Congress, working with the 
President, to shore up the aviation industry in our country. Already we 
have seen announced almost 100,000 layoffs in the aviation industry in 
our country. That will have a rippling effect throughout the economy. 
What we are doing today is trying to stabilize this industry to keep it 
on its feet in very tough times so we can minimize the layoffs. 
Hopefully, they will not be as bad as the airlines announced they will 
be and we

[[Page S9590]]

can get this country back on track so our economy will stay strong.
  What this bill does is have $5 billion in immediate assistance to the 
carriers based on their actual losses for the grounded airplane time 
they have had. As we know, there is still one airport that does not 
have service. We still have airlines losing business because of the 
September 11 tragedy that was not any fault of theirs.
  We have in addition $10 billion of loan guarantees subject to terms 
and conditions set by the President. There will be a board created to 
review and decide on the applications for these Federal credit 
instruments. The board will be the Secretary of the Treasury, the 
Federal Reserve Chairman, the Secretary of Transportation, and the 
Comptroller General. These loans will be based on sound, solid, 
hopefully, financial integrity. We are also going to put limits on 
executive compensation of any carrier that gets a part of this airline 
cash assistance package.
  We also have provisions for the Secretary of Transportation to 
provide help for airlines that are the only airline serving a 
community, and if the airline wants to pull out, we are going to try to 
encourage that airline to stay in the community. We are dealing with 
the liability issues, trying to take from the airlines any liability 
beyond what their insurers will carry.

  We also have liability provisions for the war risk insurance for all 
other industries that might be affected in the future with an act of 
terrorism that is beyond their control so that they will not be liable 
beyond their means and be put out of business.
  These are the basic parts of this legislation that we are hoping to 
pass tonight and send to the President.
  I yield up to 10 minutes to the Senator from Illinois.
  Mr. FITZGERALD. Madam President, I rise to say what I think are some 
improvements that have been made to the bill as it has been negotiated 
by various parties in the House and the Senate, and I guess with 
involvement from the White House and the Office of Management and 
Budget.
  I am very concerned about the airline industry and especially the 
many employees of the industry. Tens of thousands of airline employees 
have already been laid off. My home State of Illinois is home to O'Hare 
International Airport which is a hub for United and American Airlines, 
the Nation's two largest carriers. Perhaps no State in the country is 
as immediately affected by the problems affecting the aviation industry 
as is Illinois. I am very concerned about the employees. I met with 
several skycaps the other day who told me it was their last day on the 
job, and to see the forlorn look in their eyes was heart wrenching.
  However, I alert my colleagues, the way this bill is designed, there 
is no protection for the employees of these airlines. There are no 
strings, really, attached to the airline access of up to $15 billion in 
taxpayer money. It is money that some airlines will take, and still we 
will see lots of layoffs and poor treatment of some of the airline 
employees.
  I think Congress is remiss; we are moving too fast. We should have 
some strings attached if they are getting all this government money. We 
should have some protections for the airline employees. That is an 
omission in this bill.
  I am also concerned that anytime you have a Federal bailout of an 
industry, you have to ask, by what principle or what reasoning are you 
bailing out this industry? In this case, we have chosen to bail out the 
airline industry. The airline industry has said they are entitled to 
Federal money because the Federal Government issued a ground stop order 
on September 11 that kept their planes out of the air for at least 2\1/
2\ days, and but for that ground stop order, that edict of the 
Government, they would not have incurred the losses they did during 
those days.

  This bill might make sense if we were only compensating them for the 
losses incurred by virtue of that ground stop order. The fact is we are 
compensating them for many times the losses they suffered as a result 
of the ground stop order.
  Analysts testified before the Senate Commerce Committee yesterday. I 
sat in the whole hearing for 4 hours. We heard from many people. It was 
testified that the direct loss to the aviation industry in America as a 
result of that ground stop order on September 11 was $2 to $3 billion. 
That comports with the estimates that have come out from research 
departments, investment banks around the country, and comports with 
everything I have seen. Yet this bill has $5 billion in direct cash 
assistance and another $10 billion in loan guarantees or $15 billion in 
Federal taxpayer bailouts.
  Leo Mullin, the CEO of Delta Air Lines, testified that the direct 
loss of Delta Air Lines for each day they were shut down as a result of 
that ground stop order was $70 million. So over 3 days, Delta Air Lines 
incurred a loss as a result of the ground stop order of $210 million. 
How much in Federal assistance will Delta get as a result of this bill? 
At least four times the losses they sustained as a result of the ground 
stop order. Delta will get about 60 percent of the $5 billion in cash 
assistance. In other words, they will get a grant of about $800 
million, four times their losses, plus they will be eligible for these 
new loan guarantees.
  The bottom line is, I think this assistance is too generous. It gives 
too much money. It goes far beyond compensating the airlines for those 
3 days that Government edict was in effect.
  Clearly we are compensating them for far more. In fact, this bill 
suggests we are compensating them for all their losses through the end 
of the year. Then my question is, By what principle do we not agree to 
help other industries?
  I had the general counsel of a major car rental company call me and 
say they needed the bailout. I had restaurants tell me they are 
shutting down. There are hotels shutting down. The fact is, those other 
industries did not quite have the effective lobbying team the airline 
industries had. They were very prompt in coming to Capitol Hill and 
requesting relief. And, moreover, they got this relief in a way that I 
think is virtually unprecedented.
  When the Chrysler Corporation got its loans guaranteed back in the 
1970s, in return for making those Government guarantees the Federal 
Government was paid in warrants of Chrysler Corporation stock. The 
Government took 14 million warrants of Chrysler Corporation. When those 
warrants rose in value as the company did better and got back on its 
feet, the Government sold those warrants at, I believe, a $300 million 
profit.
  Fortunately, Senator Corzine and I worked together. We did get put 
into this bill, at our request, language to allow the Treasury 
Department, in return for any of the loan guarantees that are given out 
under this bill--the Treasury will have the authority to negotiate 
appropriate warrants so the taxpayers can participate in the upside 
here.

  I would prefer that the Treasury Department have clear authority to 
ask for warrants in return for the $5 billion in cash assistance. I 
think that would be the appropriate protection for the taxpayers. In 
fact, without that protection, then, what we are doing, by the way we 
are structuring this bailout--this is not a bailout of the industry so 
much as it is a transfer of the loss that industry has incurred from 
the airline industry shareholders to Joe Taxpayer.
  It may be intuitive to some that the general decline of the industry, 
that loss, should be borne by the taxpayers. To this Senator it is not 
intuitive that the shareholders of airlines should be protected and 
indemnified from any loss here. I find it very troubling. I think there 
should be a price the shareholders have to pay.
  I hope the Treasury Department and the Office of Management and 
Budget will try to find if they have any residual authority --they tell 
me they believe they do--to ask for warrants from each airline in 
return for the grants they are given.
  In the Continental Bank bailout, which happened in Chicago, IL, many 
years ago, in the 1980s, the FDIC did not come in and make the 
shareholders of Continental Bank rich. In fact, they wiped out the 
shareholders of Continental Bank in return for the Government 
assistance, and FDIC ended up owning 80 percent of the bank. Then, when 
the bank got back on its feet, the Government did an initial public 
offering of its shares and sold them back to the public and recouped 
for the taxpayers what they had given.
  I think we could have done better. It is an improvement from where it 
was

[[Page S9591]]

earlier in the process. I certainly hope the issuance of warrants--and 
the Treasury has the authority now to accept warrants in return for the 
issuance of the loan guarantees--I hope that authority on the part of 
the Treasury will deter companies, airlines that do not need a Federal 
guarantee, from coming to the taxpayers and asking them for that 
guarantee. So I am hopeful the Treasury will use that authority to the 
fullest extent, and I am hopeful, furthermore, that in return for the 
cash grants available under this bill, the Treasury will insist upon 
getting some equity instruments in the corporation or some payment for 
the taxpayers, lest this just be a complete and total indemnification 
of the sophisticated shareholders of the airline industry.
  Madam President, I yield the floor.
  Mr. CORZINE. Will the Senator yield for a question before he yields 
the floor?
  The PRESIDING OFFICER. The Senator has no time at this time. His time 
has expired.
  Who yields time?
  Mr. ROCKEFELLER. The Senator from West Virginia is happy to yield 5 
minutes to the Senator from New Jersey.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. CORZINE. I wonder if I might ask a question of the Senator from 
Illinois with regard to his premise that would not be subtracted from 
my time?
  Mr. ROCKEFELLER. If the Senator wishes to do it, it is on his time.
  Mr. CORZINE. The Senator from Illinois spoke about the need to ensure 
some accountability by giving the Government a stake in airlines that 
are provided grants beyond the funding necessary to compensate them for 
the shutdown period. I agree with him on that.

  Has the Senator had conversations with anyone on this question? Has 
he been led to believe that equity participation--warrants, options, 
calls--also will be extended to grants that go beyond compensation for 
losses associated with the shutdown?
  Mr. FITZGERALD. Yes, I have, in a conversation, I think, with Sean 
O'Keefe from the Office of Management and Budget. He works for Mitch 
Daniels. He was under the impression that the executive branch had the 
authority, in return for granting $5 billion worth of cash assistance, 
to demand warrants or other appropriate instruments from the airlines 
that were getting them, and that that would deter the airlines from 
asking for more than they should.
  Mr. CORZINE. Is it the Senator's belief that the equity stake 
associated with those grants would operate in the same way that is 
explicitly outlined in the bill with respect to loan guarantees, with 
respect to which the Treasury clearly has the authority to access 
warrants, options, or calls?
  Mr. FITZGERALD. Yes. Just as in return for the loan guarantees the 
Treasury could ask for warrants, I believe that in return for the cash 
grants, the Treasury can ask for warrants from the corporation.
  Mr. CORZINE. I thank the Senator from Illinois for helping clarify 
this, and making clear what the administration has said about this 
aspect of the bill.
  Having said that, Madam President, let me emphasize that I rise very 
much in support of the efforts to reinforce our aviation industry. This 
industry is in dire straits. And it is an industry that plays a 
critical role in our economy.
  It also plays an important role for our military. Senator Torricelli 
and I visited McGuire Air Force Base with senior officers on Monday, 
and they told us that about 40 percent of the transportation that our 
military folks will need in a full war might be provided by our private 
aviation industry. The strength of that industry clearly is important 
for our national security.
  Madam President, I live in a State where about 12,000 Continental 
employees work at Newark Airport. It is the largest employer in Newark. 
I very much understand the needs and desires of having a healthy and 
ongoing industry which is under stress. But, in my view, unless we have 
some discipline in this process--which very clearly has been outlined 
in the bill as it relates to loan guarantees--we would be writing a 
blank check for some companies that are very strong. This would be 
unnecessary and could dissipate resources that could be better spent on 
other important priorities, including workers who are losing their jobs 
and other struggling companies that are not in the airline industry.
  In my view, it would be a mistake to provide direct support without 
discipline. So I hope the Administration will do what it said it will 
do, and ensure that, as with the loan guarantees, the grants that we 
are offering companies--beyond those needed to compensate them for 
losses directly associated with the stop order--are accompanied by 
warrants, or options held by the Federal government. This will help 
ensure discipline and accountability, just as would be required in the 
private sector.
  Mr. ROCKEFELLER. Madam President, I would like to commend the 
Majority Leader for his hard work in putting together an airline 
stabilization bill that will save our nation's airlines and our air 
transport infrastructure. I will strongly support this bill without 
amendment.
  The terrorists who launched those despicable attacks on September 11 
took thousands of American lives, and did billions of dollars of 
damage. It has also become clear in the past 10 days that they dealt a 
body blow to the U.S. airline industry, on which virtually all of our 
citizens depend on to one degree or another.
  Demand for air travel has virtually collapsed in the past week. Last 
weekend I flew back to West Virginia, and on the return flight Sunday 
night--usually a crowded flight from Charleston to Dulles--I was the 
only passenger on the plane. Many of my colleagues have mentioned that 
they've had similar experiences in the past ten days. Flights are 
departing West Virginia airports with a load factor of 25 per cent--
only one in four seats filled. Unfortunately, this is not, like last 
week's closure of the New York Stock Exchange, a temporary phenomenon. 
Based on past air disasters or international conflicts--none of which 
was of the same massive scale as last Tuesday's attacks--airlines are 
predicting that passenger traffic will be down by almost half for the 
remainder of this year, and will take until next summer to return to 
normal levels. And those are optimistic estimates.
  This kind of crisis could do irreparable harm to the ability of 
America's airlines to continue in business. Airlines lost $300 million 
each day that they were shut down last week. They are set to lose 
billions more in the coming months. Their insurance rates have shot up, 
with some airlines telling us of a 600 percent increase in their 
insurance rates. Coming on top of what was already a difficult outlook 
because of our slowing economy, the nation's airlines--main line 
carriers and regional carriers alike--could be in bankruptcy within a 
few weeks and possibly out of business within a few months. Already we 
are seeing the first signs: a round of massive, painful layoffs for 
nearly 100,000 of our nation's hardworking airline employees. And huge 
cutbacks of around 20 percent to most airlines' schedules.
  Some people have said, well, this is the market, and it is not the 
American way to interfere with the market. But I have been pleased, as 
chairman of the Senate's aviation subcommittee, to see a broad 
consensus among my colleagues that the air transport industry is not 
just a huge business and employer, but it is also a critical element of 
our nation's infrastructure. Nowhere is that more the case than in the 
smaller states and communities like West Virginia. When people think of 
the airline industry, they usually think of big hub airports like 
Hartsfield and O'Hare. But airline traffic is just as important--maybe 
more important to smaller communities like Beckley and Bridgeport. 
Safe, convenient and affordable air service represents an important 
element of our efforts to attract development to our state. It's an 
important connection that allows our citizens and our businesses to 
overcome the historic isolation created by our state's mountainous 
terrain.
  And when I see planes flying with one passenger, and learn that 
carriers are cutting back on their schedules, and hear that several 
carriers could be in bankruptcy within two weeks, I know that the first 
communities to be hit will be small communities like those in

[[Page S9592]]

West Virginia that are at the end of the food chain, so to speak. That 
would be tragic. It would reverse the efforts our communities have made 
to attract and retain air service, and turn their residents into 
aviation ``have nots.'' It would also set in motion the slow implosion 
of the U.S. airline industry, which would spread to larger hubs and 
airports as well. And finally, it would give the terrorists who 
perpetrated last week's heinous attacks the ultimate victory, as their 
actions would lead to a severe curtailment of America's freedom of 
movement and mobility.
  It is the shared consensus of this body that cannot be permitted to 
happen, and that has driven our remarkable efforts this past week to 
put together a stabilization package for our nation's airlines.
  It will contain up to $5 billion in immediate credits to reimburse 
airlines for the revenues they lost when the government shut down U.S. 
air space last week. It will also contain $10 billion in loan 
guarantees so that our airlines can continue to obtain financing in the 
coming months.
  It will limit airlines' liability for collateral damage incurred up 
to the amount of their existing insurance coverage as a result of last 
week's terrorist attacks--a key provision because our airlines might 
otherwise not be able to obtain or afford insurance.
  It will set up a victim's compensation fund for the families of the 
innocent victims of last week's despicable attacks
  It will provide $120 million in additional authority to fund to the 
Essential Air Service program, a key element in preserving air service 
to smaller communities.
  This package is an important first step in stabilizing the U.S. 
airline industry and ensuring that air service to communities across 
the nation survives this crisis. But it does not address all the needs 
that this crisis has created.
  One important issue we will need to take up in short order is the 
plight of the nearly 100,000 airline workers who will lose their jobs 
as a result of this week's cutbacks. We have already begun to see 
airline layoffs in West Virginia. Excellent workers who expected a 
promising career in a growing industry, until terrorists hijacked four 
planes and frightened Americans out of the skies. We must take measures 
to address their needs. We provide special assistance to American 
workers who have been displaced by foreign trade; we must provide the 
same level of assistance to American workers who have been displaced by 
foreign terrorism.
  We must also be prepared to look at the needs of related industries, 
as well as the future needs of the airline industry. Many related 
industries--aircraft manufacturers, travel agents, and various travel-
related businesses--have already begun to feel the effects of this 
attack. We will have to look carefully at the real needs of those 
industries, and be prepared to take bold measures where they are needed 
and appropriate.
  One thing is certain: the survival of America's airlines is a key 
element of any solution. Their needs are real and urgent, and I 
congratulate the Majority Leader on his success in putting together a 
stabilization package that will address them.
  Madam President, Senator Schumer and I believe Senator Clinton wants 
to speak, along with the Senator from Texas and a few others. But I 
note that the Senator from Texas has an obligation, as well as all of 
us, and we would like to see this drawn to a close and have our vote. 
Those who want to speak on other subjects could perhaps do that after 
the vote. It would be just as relevant.
  From my point of view, we are at a very clear and obvious, 
arithmetically, inevitable point in time where we have to say to the 
aviation industry of the United States and, even more importantly, to 
the American people that there are going to be planes flying on Monday. 
We have to have a safety bill. That is an enormous subject, and safety 
has to come. Safety will come. Safety is going to be addressed 
immediately. There are planes to make safe. People need to feel 
confident about safety and then get aboard the plane. None of it makes 
any difference if their insurance expires. When insurance expires--
airplane companies have all received their notices--then of course 
there can be no flights. That will happen very early next week. The 
Nation will shut down with respect to that.
  The whole question of providing support on a temporary basis and 
based only on what happened as a result of the tragedy on September 11 
is important. Nothing that the Senate will be voting on will be based 
upon anything that had to do with the airlines' financial condition 
prior to September 11--only as a result of the tragedy on September 11 
and the Government-mandated shutdown.
  There are a lot of considerations about the broad economy of America 
as well as the ability of the American people to gain some level of 
confidence in getting back to travel. In fact, there are airplanes at 
the airport they can board. I remind all Americans as well as my 
colleagues that airlines remain far and away the safest form of travel, 
and they have been that way for a long time in comparison with any 
other form.
  Safety will happen. Safety is somewhat more complex, and it will 
happen. It will be done by legislation. It will be done by the 
administration. There will be a lot of money for it. But the ability of 
the aviation industry to put planes in the sky next week is where we 
have to start. If we do not pass this legislation, and do not do so 
promptly, it will not happen.
  I urge my colleagues--who understandably are saying: Wait a second, 
what about my rental car company or what about my steel industry--there 
are all kinds of things that can come into an emergency designation. 
But here, we are focused on aviation. That is the order of this day 
within our national security situation. If the planes don't fly, much 
of the economy shuts down. I think this is arithmetically 
uncontestable. I think it is an absolute priority of this Senate to 
pass it and hopefully do so in a very short amount of time.
  I call upon my colleagues to at the proper time support this aviation 
legislation--not to say that it is perfect, not to say that some of the 
legislation which has arisen out of this crisis is perfect. We will 
have a chance to revisit it. This is only the first of a wave of 
accountability and dealings with the airline industry, its financial 
health, safety, and all other manner of conditions that are coming 
before us. Without this, nothing else follows.

  I plead with my colleagues to support this legislation in spite of 
worker protection and other things which will be absolutely a part of 
what follows this vote and this legislation.
  I reserve the remainder of my time and yield 5 minutes to the senior 
Senator from the State of New York.
  The PRESIDING OFFICER. The Senator from Texas is recognized.
  Mrs. HUTCHISON. Madam President, I ask unanimous consent, following 
the Senator from New York, to yield time to the Senator from Alabama, 
who has been waiting for 5 hours.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from New York.
  Mr. SCHUMER. Thank you, Madam President.
  First, I thank the chairman of our Aviation Subcommittee, the Senator 
from West Virginia, and the Senator from Texas, the ranking member, and 
everybody who worked so hard on this issue.
  I particularly thank our leader, Tom Daschle, for his outstanding 
efforts on this bill and for all the help he provided to New York and 
the Nation in this recovery from the crash and tragic events of 
September 11. I also want to thank his talented staff who worked long 
and hard on into the night in working out provisions that were vexing 
to me--they are: Andrea LaRue, Laura Petrou, Randy DeValk, Mark 
Childress, and Mark Patterson--for all of their help during the past 2 
weeks.
  In addition, there are two technical points I want to clarify. It may 
be a little unclear to some whether all lawsuits or just lawsuits 
against the airlines will be situated in the Southern District of New 
York. The intent here is to put all civil suits arising from the tragic 
events of September 11 in the Southern District.
  Second, the prospective liability package covers the airlines, their 
agents, and other relevant parties. Agents includes, as I understand 
it, airplane lessors and financiers.
  This bill is a mixed bag. It has some things that I am grateful for 
and support. It does not take any of this

[[Page S9593]]

money from the $20 billion we were able to vote for for New York. There 
was a real attempt to do that. It does not. I appreciate that.
  There was a huge fight on the liability issue. I understand the need 
for prospective liability exemption. But at some point the families of 
those who died in the World Trade Center and not on the airplanes are 
going to be treated differently than victims had been and those who 
died who were on the ground or in buildings in the past. That has been 
rectified. There is a very generous package for those families who lost 
members in the World Trade Center bombing--who were in the World Trade 
Center, not just on the airplanes.
  Finally, my crusade has been to bring good service to the middle-
sized cities of upstate New York. While I am not fully satisfied with 
the provisions, there are provisions in the bill, and let us hope that 
is the beginning of a new chapter. The airlines are no longer totally 
independent. Therefore, I am relying on them in my meetings with them. 
What the majority leader and others have told us is that as we come 
back in future bills, we will strengthen those provisions further so 
that these airlines cannot abandon middle-sized cities such as 
Rochester, Syracuse, Albany, and Buffalo--rather large cities that 
depend on airline service. But there is a provision in the bill that 
recognizes some of that. It is better than the present law, and I 
appreciate it.
  For all those reasons, this bill is a bill I will vote for. I have 
some misgivings. Amtrak should have been included in this bill. To have 
a comprehensive transportation system, we need a good rail system. The 
congestion that so many of us see in New York airports and other 
airports around the country could well be relieved by a functioning 
Amtrak. Again, I am relying on the understanding of our leadership on 
both sides of the aisle that when we come back and do other airline 
bills, we will include Amtrak.
  It also does nothing for the workers. I am very worried, and I urge 
the airlines not to invoke a war clause when they deal with their union 
workers. Yes, indeed, when business contracts, we don't expect airlines 
not to accept those economic consequences, but I would regard invoking 
that clause as a breach of faith. I hope they will not do it. I hope 
they know they will have to come back to us and deal with it. We have 
to include employees and what they need in this package as well.
  It is a mixed bag: good on liability, good on where the money comes 
from, and OK making progress on taking account for middle size cities; 
not enough, nothing for Amtrak, nothing for labor, but we will come 
back and deal with those issues.
  If it is a mixed bag, why am I supporting this bill? Because we are 
in a new era where every one of us has to give a little bit. We heard 
the President speak. We were unified yesterday. We must keep that 
unity. It is important that each one of us no longer say: It is my way 
or no way.
  I didn't get everything I wanted in this bill. I did get some things. 
I am a little worried about the numbers as well.
  If we don't vote for this bill and we bicker, airlines will not fly 
on Monday. It will set a tone in this body that we don't need right 
now.
  Relying on the good work of our majority leader and our minority 
leader and knowing we will get back to the other issues we care about, 
I will vote for the bill, and I urge my colleagues to do the same.
  Mrs. BOXER. Madam President, I am pleased that the Senate has been 
able to act so quickly on this issue.
  As you know, all four planes hijacked last week were headed for my 
State of California. Consequently, many Californians who were simply 
trying to make their way home lost their lives in these attacks. My 
heart goes out not only to the Californians who fell victim to 
terrorism, but to all the victims of last week's attacks and their 
loved ones.
  Our Nation's aviation system was transformed into a terrorist weapon. 
As a result of the terrorist attack, the airlines are confronting an 
alarming financial situation. Last week's tragedy will be compounded if 
the aviation industry is destroyed as well.
  As an industry, airlines are losing $300 million per day. Lines of 
credit may not be available. Insurance premiums for some airlines may 
rise $100 million per year or may be unavailable period. Without 
insurance, the airlines cannot fly.
  Therefore, I support this bill to provide financial assistance to the 
airlines. I also support a victim's compensation fund to help ensure 
that victims' families receive compensation in a timely fashion.
  I am particularly pleased with the language in this bill that commits 
$3 billion of the $40 billion in the emergency funding that we passed 
last week for airline security. I hope this funding is used to improve 
screening in our airports. It is extremely important that security be 
the responsibility of the Federal Government, including creation of a 
professional security force for passenger screening. I also believe the 
funding should be used to increase the number of air marshals by 
placing an air marshal on every commercial domestic flight.
  This is only the first step in aviation security. In the next week or 
two, I will be working to see that Congress passes comprehensive 
security legislation, including federalizing screening and guaranteeing 
that air marshals are on every flight.
  Finally, I am disappointed that this bill, while bailing out the 
airlines, does not provide assistance to laid-off workers. This week 
almost 100,000 jobs were lost industry-wide. That is 100,000 families 
who are losing their incomes.
  These numbers do not even include the manufacturing sector of the 
airline industry. Boeing also announced that it could lay off as many 
as 30,000 employees in the next few months.
  We must not forget the workers who are affected. They may need help 
with job training and acquiring new skills. They may need help with 
keeping their health insurance. Again, I will be working to see that 
help comes to these families soon.
  This bill is important, but it is only the beginning of what we need 
to do after last week's tragic events.
  Mr. NELSON of Nebraska. Madam President, as we discuss this much 
needed legislation to provide financial assistance to our airline 
industry, I would like to voice my concern that air service to our 
small communities not be lost in this effort. I have consistently 
supported adequate funding for the Essential Air Service Program, and 
ensuring the viability of our small airports is a priority for me. 
Because I realize the economic impact a loss of air service would have 
on our small, rural communities, I applaud the efforts made in this 
legislation to include the needs of carriers who serve these markets.
  It is important that in considering financial assistance for the 
airline industry, that thought is given to the impact this tragedy has 
had on the regional airlines, which service our small communities. 
Essential air funding is critical to providing air service to most of 
the communities in Nebraska, as I know is the case in many States. As 
we continually focus on how to regain confidence in our economy, I 
believe this is one area where Government assistance can truly be 
beneficial. Because it is imperative to the economic wellbeing of these 
small communities that air service be continued, increasing the level 
of essential air service funding is critical to ensuring the air 
carriers serving small communities can continue to do so.
  I understand that the bill contains language authorizing the 
Secretary of Transportation to require air carriers currently receiving 
direct financial assistance to maintain scheduled air service to any 
point served by that carrier prior to September 11. In addition, the 
Secretary may require these carriers to enter into agreements, which 
will, to the maximum extent practicable, ensure that all communities 
that had scheduled air service before September 11 continue to receive 
adequate air service.
  I do have concern that in light of recent events some of these 
carriers will cut service to communities that rely on Government-
subsidized air service. Therefore, I urge the Secretary of 
Transportation, in carrying out his authority under this bill with 
respect to these carriers, to consider the devastating impact cutting 
air service to small communities, especially rural communities, will 
have. It is my hope that the provisions of this bill provide sufficient 
protection of air service to small communities.

[[Page S9594]]

  Mr. McCAIN. Madam President, the bill that we are voting on today not 
only provides financial assistance to airlines, it addresses the issue 
of legal liability for the tragic events of last week by creating a 
federally-funded victims' compensation fund and by limiting airlines' 
potential legal liability to ensure their continued operation.
  The effect on the airlines of the September 11 terrorist attack put 
Congress in the unenviable position of having to take immediate action 
to prevent the collapse of the aviation industry as a result of the 
federally ordered grounding of all aircraft and the anticipated 
reduction of air travel.
  One of the most difficult issues we had to grapple with was the 
enormous potential liability that airlines faced if courts determine 
that they were negligent and in some way responsible for the damage 
wrought by the terrorist attacks last week.
  Aviation financiers informed Congress that this potential liability 
was a barrier to the airlines' obtaining credit in the private market, 
which we anticipate they will soon have to seek despite the direct 
financial assistance we are providing to them today.
  The vast uncertainty of our litigation system posed significant 
challenges to crafting reasonable limitations on airline liability 
while providing compensation for the victims of the terrorist attacks 
and their families.
  Disturbingly, while courts could order the liquidation of our biggest 
airlines if they are deemed liable for the catastrophic damage of 
September 11, victims could also receive no compensation from the 
courts if they determine that corporate entities, including airlines, 
were not responsible for the devastating damage arising from the 
terrorist attacks.
  We faced two unsatisfactory outcomes: 1. that the airlines, whose 
liability insurance coverage is insufficient to cover all damage, would 
be dissolved as their assets were sold to pay off their liability and/
or; 2. some or all of the victims who were injured or killed in this 
tragedy would receive no compensation.
  The liability provisions in this bill are by no means perfect, but 
they are intended to prevent these two unacceptable results.
  To ensure that the victims and families of victims who were 
physically injured or killed on September 11th are compensated even if 
courts determine that the airlines and any other potential corporate 
defendants are not liable for the harm; if insurance monies are 
exhausted; or are consumed by massive punitive damage awards or 
attorneys' fees, the bill also creates a victims' compensation fund. 
These victims and their families may, but are not required to, seek 
compensation from the Federal fund instead of through the litigation 
system.
  At the same time, to provide for the continued operation of our 
airlines, the bill limits airlines' civil liability to the amount for 
which they were insured at the time of these unforeseen events.
  No amount of money can begin to compensate the victims for their 
suffering. Nothing will make them and their families ``whole.'' It is 
not the intent of the federal fund to do this. Nor is it the intent of 
the fund to duplicate the arbitrary, wildly divergent awards that 
sometimes come from our deeply flawed tort system--awards from which up 
to one third or more of the victims' award is often taken by attorneys.
  The intent of the fund is to ensure that the victims of this 
unprecedented, unforeseeable, and horrific event, and their families do 
not suffer financial hardship in addition to the terrible hardships 
they already have been forced to endure.
  In addition to removing the specter of devastating potential 
liability from the airlines, and guaranteeing that victims and their 
families will receive compensation regardless of the outcomes of the 
tangle of lawsuits that will ensue, the bill attempts to provide some 
sense to the litigation by consolidating all civil litigation arising 
from the terrorist attacks of September 11 in one court.
  It is regrettable, but perhaps inevitable, that the unity that this 
terrorist attack has wrought will devolve in the courts to massive 
legal wrangling and assignment of blame among our corporate citizens. 
It is my hope that the liability provisions we are adopting today will 
serve, to some extent, to reduce this, and produce as fair a result as 
possible in light of the gross injustice of these events.
  Mr. GRASSLEY. Madam President, I am pleased that the Senate is moving 
with great speed to insure the short-term stability of our nation's 
airlines. The tragic events of September 11 have unfortunately made 
this legislation an absolute and immediate necessity. This Senate us 
wisely moving with great dispatch.
  This act is difficult for all of us. It has not been easy to 
negotiate by any means. But the Senate has come together for the good 
of this great nation to do the right thing. That is, to keep the 
airlines in the air.
  The airline industry is a marginal industry, just like farming. And 
just like farming, it depends upon a constant and consistent flow of 
cash. That critical cash flow dried up on September 11. This 
legislation provides needed cash assistance and loan guarantees to make 
up for the current terrorist induced shortfall.
  The bill also addresses critical liability issues. As a member of the 
Judiciary Committee, I will monitor these provisions continually and 
closely as to their propriety and proper functioning. I will not 
hesitate to step in as I see necessary should the situation call for 
further action.
  I welcome the language concerning Essential Air Service, EAS. This is 
a proven program with an administrative bureaucracy already in place. 
State and communities understand the EAS program and its important role 
in maintaining air service to small, underserved communities. This 
program has the potential to help several communities in Iowa which now 
face the loss of air service. It will help to prevent these small 
communities from bearing the brunt of air service reductions. I 
strongly urge appropriations to provide the funding necessary to insure 
the success of the program.
  I wish this measure was not necessary. But it is. The cowardly acts 
committed by terrorists on September 11 have made it so.
  The terrorists will not win. The American airlines will continue to 
fly, and Americans will continue to fly on them. Our economy and 
culture will grow and thrive. Of this, I am confident.
  Mr. HATCH. Madam President, I rise to speak about S. 1450, the Air 
Transportation Safety and System Stabilization Act.
  Let me first say that I support the intention of this bill. I want to 
ensure that the victims of this heinous crime receive just compensation 
while at the same time we provide much needed stabilization to the 
airline industry. That balance is a very difficult thing to achieve. I 
have very strong reservations about whether we accomplished that task 
in a fair or feasible manner here today. It is with mixed emotions that 
I support this bill. I hope that there is an opportunity to address 
these concerns down the road and to improve on what we have done here.
  This bill does do some good. We provide a generous administrative 
remedy for all victims who were physically injured or killed as a 
result of this attack. This will help ensure that injured people 
receive money and receive it faster than they otherwise would if left 
to pursue claims through litigation. It also provides that the Federal 
Government can recoup, to the extent possible, any money from the 
responsible parties, including the terrorists whose assets we may be 
able to recover in the future.
  We also provide the airlines with some much needed cash to cover the 
losses they incurred as a result of the Federal Aviation 
Administration's ordered shutdown of air traffic for nearly a week. 
However, we have not included a provision that I wanted to guarantee 
that once the airlines receive this cash infusion and government loan 
guarantees, they would not discharge their federally guaranteed debt in 
bankruptcy.
  The limitation on liability included in this bill has some productive 
aspects. We limit the liability of the airlines to the extent of their 
insurance coverage in order to allow them to keep operating. In my home 
state of Utah, Delta Airlines employs over 4,700 people. I don't want 
to see a company that employs so many people in my State go out of 
business. Air service is

[[Page S9595]]

essential. However, we also must protect the liability of other 
defendants in potential litigation. If we do not, then we very likely 
will place other defendants in a worse position than if we do nothing 
at all. For instance, under the legal principle of joint and several 
liability, even if a nonairline defendant is only 10 percent liable and 
the airline is determined to be 90 percent liable, the nonairline 
defendant may be required to pay more than its share of liability 
because the airline's policy limits have been exceeded in the judgment. 
This could be an unfair outcome and is a serious concern. Do we really 
accomplish our goal of keeping air transportation operating if we 
sacrifice the other entities that contribute to a well-functioning 
airline industry? I am talking about the airline contractors and 
subcontractors as well as the companies that built the planes, the port 
authorities, and even those that built the World Trade Center itself.
  For those who seek to pursue the litigation route, I am pleased that 
we consolidated the causes of action in one Federal court so that there 
will be some consistency in the judgments awarded. However, because the 
pool of funds available to potential plaintiffs will be limited, we 
need to eliminate, or at least limit, the punitive damages that can be 
awarded. I do not want to deny any legitimate plaintiff just 
compensation. He or she should receive both economic and reasonable 
noneconomic damages which would include everything from lost earnings 
to emotional distress. However, If we do not limit outrageous jury 
awards of punitive damages, we run the risk of denying some plaintiffs 
their rightful share in an award. If one plaintiff's punitive damage 
award is excessive, it could very well deplete the amount of funds 
available to pay awards, leaving other plaintiffs out in the cold. 
Don't we want to ensure that all legitimate plaintiffs receive 
compensation?
  This was indeed a horrible attack on our country and I have 
confidence that the President will make sure that the terrorists are 
brought to justice. With this bill the Government attempts to provide 
some relief to the victims of this attack. Unfortunately, the 
Government cannot do everything. What pleases me most in the aftermath 
of this tragedy is the extent to which the communities across the 
country have reached out to help their neighbors. We have all heard of 
those heroic firemen and police officers who gave their lives trying to 
save the lives of others. Also, those noble passengers who sacrificed 
themselves rather than let the terrorist inflict even greater damage on 
the ground. There are many wonderful charitable organizations such as 
the Red Cross and the Salvation Army who responded immediately to 
assist victims of the terrorist attack. Donations have been pouring in 
from across the country to assist the victims. It warms my heart and 
reminds me of the Thousand Points of Light that President Bush's father 
often referenced regarding the generous nature of our communities. 
Because of all of this, I am confident our country will come out of 
this tragedy stronger.
  Mr. CLELAND. Madam President, I rise today to direct my colleagues' 
attention to the needs the workers who play a vital role in our 
nation's aviation system--tens of thousands of men and women who are 
often overlooked by those who travel by air. From the ticket agents to 
the sky caps to the mechanics, these workers support the American 
airline industry and promote its viability.
  These same workers were uniquely impacted by the terrorist attack on 
September 11, 2001. Their place of work--a place that should be safe--
was violated when terrorists turned the four commercial planes into 
missiles. On that fateful day, the air travel system in this country 
ground to a halt. The order to ground our aircraft was an unprecedented 
and correct action by the Department of Transportation. For the next 
four days there was virtually no air travel in this country, and the 
airlines suffered huge financial losses.
  In the wake of this tragedy and as the airline industry is returning 
to the skies, the Administration and Congress are working to stabilize 
this industry. Unfortunately, the aid Congress is providing will not be 
enough to retain the entire current workforce of the major airlines. I 
have heard that lay-offs in the airline industry could top 100,000 by 
next week! That is one hundred thousand people who will be faced with 
losing their health insurance and their source of income. One hundred 
thousand people who will be faced with reviewing their retirement 
plans. One hundred thousand people who will be faced with making 
difficult decisions. These people cannot be forgotten.
  While I will be supporting the economic aid package for the airlines 
without a provision for employee assistance, I will be redoubling my 
efforts to ensure these dedicated employees, who are casualties of the 
first war of the 21st century, will not be overlooked. I am 
cosponsoring a bill introduced by Senator Carnahan to provide benefits 
to the dislocated employees of our aviation industry. This package of 
relief would provide funding for unemployment insurance and health 
insurance, and it will contain provisions to aid in the retraining of 
these workers. These are basic measures we can and must take to help 
stabilize these employees.
  No one expected September 11 to develop as it did, and we are reeling 
from this tragedy. Congress is appropriately acting today to support 
the airlines--an industry critical to our national security and 
economy. And I fully support and will work to enact a package of 
assistance to those workers who are suffering as a result of this 
attack.
  Mr. FEINGOLD. Madam President, I will support this relief package, 
however, I have a number of concerns. There is certainly a legitimate 
need to assist our nation's airlines in this time of crisis. I am 
concerned, however, that we are forgetting about airline employees and 
their families, including many Wisconsinites. These massive layoffs are 
a double blow to an already shocked country. We should act quickly to 
ensure that those who work for our nation's airlines and their families 
receive adequate relief, including continued access to health care and 
unemployment and job training assistance. We must be careful that this 
airline relief package is targeted at those airlines that are facing 
economic losses due to the recent terrorist attacks and not instead 
used to prop up firms that were already in financial trouble before 
this tragedy.
  Mr. LEVIN. Madam President, I am very disappointed language was not 
included in the Air Transportation Safety and System Stabilization Act 
addressing employee compensation for the thousands of airline employees 
who have lost their jobs in the past week. It is imperative that we 
address this in the immediate future. However, there is a crucial need 
to act swiftly to stabilize the airline industry. Therefore, I will 
support this legislation which includes a number of critical provisions 
to stabilize the airline industry and restore confidence in this 
industry. I hope that we will address employee compensation and 
additional airline security issues in the very near future.
  The airline industry is losing about $300 million to $350 million a 
day. Losses incurred by the industry for the 2 days that the airlines 
were grounded total $1.25 billion. In the past week alone there have 
been 100,000 layoffs by the airlines including 10,000 at Northwest 
Airlines. Northwest Airlines has as a major hub in Detroit and serves 
as an economic engine for Michigan with over 18,000 employees in the 
State. Northwest Airlines now has a net negative booking rate which 
means that more people are calling to cancel their tickets than there 
are people calling to purchase tickets. The airlines are now only 
carrying about 30 to 40 percent of their normal capacity.
  We cannot let this important industry go under. There is simply too 
much at stake. This legislation provides an immediate $5 billion cash 
infusion to stop the immediate hemorrhaging of the airline industry and 
to cover their losses for the month of September. It also provides $10 
billion in Government-backed loan guarantees which will help the 
industry gain access to credit and maintain its long-term viability. 
The airline industry currently has no access to capital because its 
traditional collateral, airplanes, are now considered worthless by Wall 
Street. The $10 billion will be made in the form of loans, not grants, 
and that they will be paid back.
  Under this bill, the Secretary of Transportation has discretion in 
making the loan guarantees. For instance, when an airline applies for a 
loan it

[[Page S9596]]

will have to provide access to its books to prove that the loan is not 
going to repair past management actions that might have occurred before 
September 11.
  This bill also allows the Secretary of Transportation to use his 
authority to require airlines benefitting from Federal funding to 
continue to serve midsized and small airports and communities. This is 
important for all those people in Michigan and around the country 
living in rural communities who may depend on a single airline for 
service. If that airline were to pull out, they would be left stranded. 
In addition, the bill authorizes $120 million for the Essential Air 
Service, an important program which subsidizes airline service in those 
communities where it is not profitable to serve. This program allows 
the Government to share some of the costs of providing service and in 
exchange, the Government can require that a carrier continue to serve a 
community. This guarantees that these communities will have airline 
service. It is a program that is currently underfunded and in need of a 
higher authorization which this bill provides. A number of Michigan 
communities participate in this program and, unfortunately, others may 
soon need to gain access to the program in order to keep the air 
service they currently have.
  Senate action today to provide the airlines with funding to keep them 
solvent is very important. It will help return confidence to the 
marketplace and keep some airlines from going under. But it is equally 
important that we turn immediately to the other critical issues such as 
providing assistance for displaced workers and airport security 
measures.
  Mrs. FEINSTEIN. Madam President, I rise today in support of the 
financial package before the Senate to help protect a vital industry to 
our Nation's economy. I believe that this legislation is one essential 
component in a series of steps that Congress has taken, and will 
continue to take, to address the tragic and horrific attacks of 
September 11, 2001.
  So far, Congress has taken considerable action in the wake of the 
unprecedented events last Tuesday. Congress condemned the violence in a 
joint resolution, Congress authorized the President to use ``all 
necessary and appropriate force'' to retaliate for the acts of war 
against our Nation, and Congress approved $40 billion to rebuild from 
the rubble and prevent further acts of terrorism during this time of 
great peril.
  These are the steps Congress has taken so far, but they are not the 
last of what we will do, or what we need to do to mitigate the damage 
and destruction.
  The next step we must take is to pass this financial relief package. 
Once this is passed, Congress will need to consider legislative 
solutions on other matters stemming from the September 11 attacks. For 
example: What long-term changes do we need to make to our aviation 
security system? How can we establish stricter guidelines on issuing 
visas? How do we build up our homeland defense against more deadly 
terrorist attacks in the future? What can we do to stimulate more 
consumer spending, more job creation, and more investment in this time 
of uncertainty?
  The events of September 11 demand that Congress and the President 
work together to remedy the devastation the attacks have inflicted upon 
our safety, our economy, and our livelihood. The legislation before us 
today is part of the comprehensive action Congress must take to help 
our Nation reclaim unprecedented growth of which we know our economy is 
capable.
  The terrorist attacks of September 11 have dealt a crippling blow to 
the airline industry. This package of assistance is essential to keep 
the airlines up and running because they are an important component to 
our Nation's economy. Airlines are the very backbone of our 
transportation infrastructure enabling people and goods to flow freely 
and quickly across our Nation.
  Airline travel and air cargo shipments interconnect our global 
economy and contribute a significant amount of jobs to the U.S. 
Economy. Consider the following: Approximately 1.2 million people work 
for the airlines in this country. Last year about 670 million 
passengers traveled on commercial airlines and the industry provided 
over 25 billion ton miles of freight delivery. The U.S. commercial 
aviation industry contributes over 10 percent of the Nation's GDP.
  Yesterday, David Walker, Comptroller General of the United States, 
testified before the Commerce Committee. According to Mr. Walker, ``The 
continuation of a strong, vibrant, and competitive commercial air 
transportation system is in the national interest. A financially strong 
air transportation system is critical not only for the basic movement 
of people and goods, but also because of the broader effects this 
sector exerts throughout the economy.''
  The contributions airlines make to our economy are clear, yet the 
industry estimates that the overall impact of the terrorist attacks 
will cost $24 billion and companies may be forced to lay off over 
140,000 employees. Airline stocks plummeted when the market reopened 
Monday and they have continued to fall this week.
  Secretary Mineta has indicated that the industry has been losing $300 
million a day in lost revenue since Tuesday, September 11. Some 
financial analysts predict the airline industry will lose $6.5 billion 
this year, triple the $2.2 billion loss that was expected.
  The ripple effect of the terrorist attacks is clear. Once people stop 
flying, airlines cut back on flights. Lighter flight schedules mean 
airplanes lie idle and companies' employees lose their jobs. Fewer 
flights mean airlines do not need as many new planes or airplane parts. 
So it comes as no surprise that this week, Boeing announced 30,000 
employees would lose their jobs.
  I have received many letters asking me to support this plan before 
the Senate, and I believe it is important to point out that the vast 
majority of these letters are not from airline employees, but rather, 
from workers whose jobs are indirectly dependent on airlines.
  One such letter is from G. Hardy Acree, the director of Sacramento 
County's airports. Mr. Acree wrote, ``Quality air service is critical 
to our community. Without it, Sacramento County's economic development 
and tourism industry will suffer, and the growth we've worked so hard 
to sustain will be lost. This is an issue whose impact goes well beyond 
the airline sector.''
  The same could be said for all of California's 58 counties and, in 
fact, for every one of the 3,142 counties across the Nation.
  The economic impact is spreading beyond U.S. borders. London-based 
Virgin Atlantic Airways said it must trim its operations by 20 percent 
and lay off 1,200 employees, the first ever layoffs for the company in 
its 18 years of existence.
  Just as the problems are not confined to one region, they are not 
confined to one industry. The president of the American Society of 
Travel Agents, Richard Copland, wrote to tell me of the tremendous 
losses suffered by the travel agencies across the U.S. According to Mr. 
Copland, ``There are many other groups of firms that are normally 
thought of as separate `industries' but that in fundamental reality are 
an integral part of what airlines do. Travel agencies are among 
those.''
  Travel agencies, hotels, cruises, and many other industries directly 
depend on the airline industry. And there is almost no business that 
does not indirectly depend on the airlines. How else do employees meet 
with clients? How else do goods ship overnight?
  As Jonathan Tisch, chairman of the Travel Business Roundtable, wrote, 
``The link that airlines provide to the travel and tourism industry 
cannot be underscored enough. Airlines are the conduit for so many 
industry activities, bringing travelers to hotels, resorts, restaurants 
and shopping in cities and towns around the country.''
  I want to acknowledge Mr. Tisch's point, the collective ripple effect 
airlines have on the entire economy is immense. I would like to ask my 
colleagues and constituents to think of this legislation, not as a 
bailout plan, but as a relief package. It is just compensation for the 
direct damage inflicted on the airline industry and the U.S. economy as 
a whole.
  One more point I would like to make is that since my husband is on 
the board of an airline company, the easiest thing for me to do would 
be not to vote on this legislation. The Senate

[[Page S9597]]

Ethics Committee, however, has assured me that voting on this bill is 
not a conflict of interest for me because there will be a wide range of 
beneficiaries from this legislation.
  Furthermore, at this time, the economic ramifications are as such 
that I am compelled to vote on this bill because I strongly believe it 
is in the national interest to do so.
  We have allocated billions to rebuild in New York and Virginia. Let 
us also allocate billions to rebuild our Nation's economy.
  Mr. DOMENICI. Madam President, this is an important piece of 
legislation. We need to enact it today. Without immediate financial 
assistance, many airlines face imminent bankruptcy as a direct result 
of the horrific terrorist attacks that took place on September 11.
  This bill provides $5 billion in emergency direct assistance to 
reimburse the airlines for the direct costs of the terrorist attacks 
and preventing another attack. It also provides $10 billion in loans 
and loan guarantees to help the airlines while they recover from these 
attacks. These loans will also restore the confidence of the private 
capital markets, which are unwilling to lend the airlines.
  Because of this legislation, the airlines are going to be around to 
pay back these loans. Therefore, from a budget point of view, the 
impact of the loans on the Federal budget will only be about $3 
billion. But the airlines get the $10 billion essential to keep them in 
business.
  Also, this afternoon President Bush made the first apportionment of 
monies we appropriated one week ago today for the Emergency 
Supplemental Appropriations Act for Recovery to the Terrorists Attacks.
  Out of the $40 billion in that Emergency appropriation bill provided 
to the President, he has this afternoon transferred nearly $5.1 billion 
to Departments and Agencies to address funding needs related to the 
attacks of September 11.
  This is just the first in what will be many more transfers out of the 
total funds provided. The Department of Defense will immediately 
receive $2.5 billion and the Federal Emergency Management Agency will 
receive $2.0 billion today.
  But also within today's transfers is $141 million for the Department 
of Transportation, the bulk of which is to the FAA to support immediate 
increased airport security measures. I am sure, once again this is just 
the first of what will be much more funding coming out of the $40 
billion to increase security measures at our airports and expand the 
Federal Sky Marshal program.
  This expansion requires first-rate training for our new law 
enforcement officers. The Federal Law Enforcement Training Center, 
FLETC, in Artesia, NM, is uniquely positioned to serve as the primary 
training center for the new sky marshals and other aviation law 
enforcement officers. Moreover, it is located only 40 miles from the 
Roswell Industrial Air Center, which can handle planes as large as 
747's. These facilities can play a vital role in enhancing our Nation's 
aviation security.
  The PRESIDING OFFICER. The Senator's time has expired. The Senator 
from West Virginia.
  Mr. ROCKEFELLER. Madam President, the Senator from West Virginia 
recognizes the junior Senator from New York for a period of 5 minutes.
  The PRESIDING OFFICER. Without objection, the Senator from New York 
is recognized.
  Mrs. CLINTON. Madam President, I thank the Senator from West 
Virginia. I rise to join the comments of my colleague, Senator Schumer.
  Many of us recognize the need for immediate action to aid our 
struggling airline industry and are prepared to do so. We also 
appreciate greatly the continuing bipartisan cooperation that is 
helping this body address the needs of our country in the wake of the 
terrible attacks of September 11.
  I am very grateful that the long negotiations in the House and the 
Senate over the last several days, along with the White House, have 
resulted in a process to provide relief to families who have either 
lost a loved one or sustained significant personal injury.
  We are also grateful that the legislation provides more support for 
essential air services, particularly in many of our more rural areas, 
such as Watertown, NY, that are totally reliant on air service which 
still comes in to serve those communities.
  The passage of this legislation can only be a beginning. We also must 
make our airports as secure as possible. I am honored to join in 
legislation Senator Hollings and Senator Rockefeller and others are 
putting forward to address the security issues so that Americans have 
the confidence I know they should have in flying once again, resuming 
our normal life.
  We also will have to work together to develop a process so the many 
businesses that have sustained losses will be able to seek relief in 
some expedited process and not get buried and even bankrupted by an 
extensive round of litigation. I just learned that the litigation that 
was filed following the 1993 bombing of the World Trade Center is still 
ongoing. Businesses have no certainty, no resolution of what their 
liability, if any, might be. We need to avoid that in the wake of this 
tragedy and do everything we can to come up with a process that deals 
with the needs of other businesses as well as the airline industry.
  I also hope that the assurances we have received with respect to the 
airline workers who have been laid off or displaced will be addressed 
as soon as possible. I am well aware that a package being considered to 
help the workers was stripped out of this bill. We have to revisit it. 
It is something that is growing in importance day by day. There are now 
at least 74,000 people affected. We expect in the next few days that 
number to grow to 100,000. I suggest we look at some kind of an aid 
package modeled after trade adjustment assistance to extend 
unemployment insurance, job training, support services to airline 
workers and other workers who have been directly affected by the 
attacks on our country.
  We also will have to look at the way our entire transportation system 
operates. I am very proud of the way Amtrak stepped in to fill the need 
for the movement of passengers and goods. Their ridership is up 
nationwide. They have honored airline tickets of stranded airline 
passengers and shipped relief and medical supplies. Amtrak has also 
made security upgrades on trains and in stations. But we need to do 
much more to address the critical needs in the Northeast corridor as 
well as the rest of the country.
  I look forward to working with my colleagues. I see my good friend 
Senator Hutchison from Texas who led the fight on the high speed rail 
bonding act. That is just one of the many issues we need to consider as 
we look at transportation, again, as part of national defense.
  I well recall how President Eisenhower obtained the funding for the 
Interstate Highway System because it was part of national defense. Our 
highways, our airways, and our railways are all part of our national 
defense infrastructure.
  Finally, I say once again how grateful we in New York are for the 
tremendous and continuing outpouring of support from the American 
people. I particularly thank the President for his strong support. I 
was overcome by his absolute resolute commitment to rebuilding New York 
in his speech last night as well as the other very strong words of 
reassurance and resoluteness he delivered with respect to the 
challenges we face. I appreciate greatly his leadership and his support 
throughout this crisis.
  The PRESIDING OFFICER. The Senator from Texas.
  Mrs. HUTCHISON. Madam President, I yield 5 minutes from my time to 
the Senator from Virginia.
  The PRESIDING OFFICER. The Senator from Virginia.
  Mr. ALLEN. Madam President, I thank Senator Hutchison, who has been 
an outstanding leader on the issue of aviation safety and better 
airline quality for many years.
  This is not something that Senator Hutchison first started worrying 
about after this terrible disaster of September 11. She has been 
working on this issue way ahead of time. If more people had listened to 
Senator Hutchison years ago, some of the concerns we are now finally 
addressing would have been addressed.
  I join with many of my colleagues in thanking Senator Hutchison and 
all

[[Page S9598]]

those who worked together on this package to provide some stabilization 
for air transportation.
  Yesterday we had hours and hours of hearings with Secretary Mineta, 
who all of us recognize did a great job in coordination with the FAA, 
in grounding all flights. They saved lives. They saved lives here in 
America with that quick decision.
  However, without that decision in response to the terrorist attack, 
our airlines would be in much better financial shape today. We are now 
in a different paradigm, a different world.
  I have heard comments from my colleagues: Why is the Federal 
Government involved in this versus other businesses? The main reason 
is, the Federal Government controls the air, and the FAA grounded all 
the airplanes. It actually said: You must stop business. That decision 
has caused losses for the industry. Today we will vote to provide 
compensation for those lost revenues resulting from this necessary 
decision regarding the safety of our citizens.
  We also recognize the absolute essential nature of air travel for our 
way of life, for our economy, for commerce, and for our national 
security. It has been stated by many others how important it is for our 
economy and how many jobs are affected.
  In our Commonwealth of Virginia, Reagan National Airport is shut down 
today. It remains the only airport in the Nation that is prohibited 
from operating. There are 10,200 employees currently out of work, and 
then about five to seven times as many employees indirectly affected 
who are also out of work.
  General aviation fortunately is back, at least at a greater level 
than it was previously. But we know that the layoffs are in the tens of 
thousands across this country. We recognize the need for safe planes. 
Next week we will address airline safety with efforts to make sure the 
cockpits are safer and the security is better. Today we will address 
the financial losses resulting from the events of September 11.
  However, I had hoped that this bill would include assistance for 
workers who had lost their jobs as a result of the airlines being 
grounded.
  Mrs. HUTCHISON. Madam President, my time is taken. I apologize, but 
my time is taken.
  The PRESIDING OFFICER. Who yields time?
  Mr. ALLEN. Senator Rockefeller, may I have 1 minute of your time?
  Mrs. HUTCHISON. Our time has been divided.
  Mr. ROCKEFELLER. I yield 30 seconds.
  Mr. ALLEN. I thank the Senator from West Virginia. I share the desire 
to make sure employees who are out of work are also taken care of with 
both health and unemployment benefits. I am working with Senator 
Carnahan of Missouri to make sure that this is made part of the overall 
package. I will cosponsor her bill to provide unemployment assistance, 
extend healthcare benefits and to provide for worker retraining. We 
need to act today on aid for the airlines so that future job losses are 
avoided, and in the future let's make sure we take care of those hard-
working employees who are have already lost their jobs through no fault 
of their own. I thank my friend from West Virginia.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  The Senator from Massachusetts is recognized.
  Mr. KENNEDY. Madam President, the airline industry's damages from the 
September 11 terrorist attacks are immense and unprecedented. Clearly, 
we must provide relief for the airlines, but we must not forget the 
airline workers and other workers harmed by this tragedy.
  Failing to include relief to workers in this bill is a serious 
omission. It is essential for Congress to act as soon as possible to 
provide support for airline workers.
  The toll across the economy from this tragedy will be staggering, and 
the economic hardships to millions of American working families will be 
severe. Large numbers of workers have already been laid off, and the 
working poor will soon become the unemployed poor.
  We have already seen tens of thousands of layoffs. Who are these 
workers? They are the flight attendants who are single parents raising 
their kids on their own; they are the reservation agents trying to make 
a living; they are the security clerks, cashiers, and baggage handlers.
  I also understand that the airlines are trying to get out from under 
the contracts they have with employees. I think this is wrong.
  We are assisting the airlines, and they should not leave their 
workers high and dry. We need to provide critical long-term 
unemployment insurance benefits, training assistance, and health care 
coverage for workers affected by these terrorist attacks. Layoffs in 
the airline industry alone are expected to total more than 100,000 
workers.
  Even beyond the issue of fairness, helping workers during a slowing 
economy is good economic policy. The unemployment insurance system will 
be critical to our Nation's recovery and economic health. Unemployment 
benefits help workers bridge the gap between jobs. It also puts the 
money in the hands of the unemployed. Unemployed workers spend benefits 
rather than saving them, thereby stimulating the economy.

  Workers deserve action on this issue from this Congress. This is not 
just a matter of labor rights; it is a matter of human rights, 
fairness, and decency. Every day we delay, more workers suffer. 
American workers are waiting for relief, and we owe it to them to act.
  A strong airline industry is critical to the national economy. We 
need to keep the airlines flying. But we also need to provide critical 
assistance for the airline workers and other workers who have lost 
their jobs as a result of this disaster. I call on my colleagues and 
the President to address this matter as soon as possible. No one has 
been more affected by this than our State of Washington, and Senator 
Murray has spoken frequently about this, as well as Senator Cantwell.
  I yield a minute to the Senator from Washington and the remaining 
time to the floor manager.
  The PRESIDING OFFICER. The Senator from Washington.
  Mrs. MURRAY. Madam President, I thank my colleague from 
Massachusetts. I thank all of our colleagues who have worked together 
in a very bipartisan manner over the last week to address the critical 
issues coming at us. I know we need to help the airline industry, and 
that is why this bill is important.
  I remind my colleagues that thousands of workers were left out of 
this bill. I have 30,000 employees in my home State of Washington at 
Boeing who have been left out of this bill. They are just as patriotic 
and they have worked just as hard. They deserve our attention just as 
much. We should not forget them when we are taking care of the owners 
of these airline companies.
  It is the workers who go to work every day who make this country 
great and strong. We need to make sure we have a commitment to them in 
the coming week to put together an aviation package that includes 
employee assistance for those who have made this country what it is.
  I thank my colleague from Massachusetts and Senator Cantwell from my 
State, and other Members, such as Senator Carnahan. I pledge my support 
to make sure this Senate doesn't forget the workers as we put together 
the aviation package that has been promised. I thank my colleague from 
Massachusetts, and I yield the floor.
  The PRESIDING OFFICER. The Senator from Texas is recognized.
  Mrs. HUTCHISON. I yield 3 minutes to the Senator from Pennsylvania.
  Mr. SPECTER. I thank my colleague from Texas. I am encouraged to see 
the Senate and the House moving so promptly on this legislation to keep 
the airlines functioning. The terrorist attack is really an attack 
against the United States as a whole, and when we have losses directly 
attributable to that attack, it seems fair to me that the entire Nation 
should sustain those damages. What we are doing today with the cash 
grant and especially the loan guarantee will keep the airlines 
operating, which is very important for the lifeblood of our country and 
very important for an economic recovery.
  US Airways, illustratively, needs the loan guarantees in order to get 
financing to keep operating. US Airways is

[[Page S9599]]

only one of many carriers across the country, but it illustrates the 
problem and it illustrates the issue especially pertinent to my State 
of Pennsylvania, which has some 17,000 US Airways employees dependent 
upon their jobs. This is a very, very important matter for 
Pennsylvania, and a very important matter for America.
  This legislation also establishes a very appropriate procedure for 
compensating the victims on a program administered by the Attorney 
General's office without going through the long litigation process. 
However, it is only a first step.
  There is more to be done on airport security, on security within the 
airplanes, on compensation for the workers with some 100,000 already 
having lost their jobs, and with the ripple effect on hotels, on the 
airport complexes, on restaurants, on tourism, and on the airports 
which sustain themselves by having the shops now unfrequented by 
customers because only ticketed passengers can get within the area.
  How much time remains on my 3 minutes?
  The PRESIDING OFFICER. The Senator has 45 seconds.
  Mr. SPECTER. I yield back the time.
  The PRESIDING OFFICER. Who yields time?
  Mr. ROCKEFELLER. I yield 2 minutes to the Senator from Vermont.
  Mr. LEAHY. Madam President, I thank the Senator from West Virginia.
  The heart of every American aches for those who died or have been 
injured because of the tragic terrorist attacks in New York, Virginia, 
and Pennsylvania on September 11th. Our first priority should be 
ensuring that their needs are met and that they receive adequate 
compensation.
  At the same time, the airline industry of this country is in grave 
danger of collapse. The industry has announced more than 100,000 
layoffs. Insurance companies have reportedly contacted the airlines 
about lowering the terrorist-related protections in their policies. And 
they have warned that they are running out of cash. If Congress does 
not pass this legislation today, it is likely that all of our Nation's 
air carriers would cease service next Wednesday.
  The bipartisan, bicameral legislation we are considering today 
provides $5 billion in direct grants to cover the cost to the airlines 
from the closing of all the nation's airports after last week's 
terrorist attacks. The bill also provides $10 billion in loan 
guarantees to help the airlines through their cash crunch, funds to be 
distributed within 14 days by a four-member Air Transportation 
Stabilization Board. Further, it extends the existing War Act, which 
protects airlines from liability during wartime for overseas flights, 
to cover domestic flights and include terrorist acts. Finally, it 
provides that the liability of the airlines involved in the terrorist-
related airline crashes on September 11, 2001, will be limited to the 
amount of the insurance coverage they have for such instances, and all 
legal cases stemming from these incidents will be consolidated in the 
United States District court for the Southern District of New York.
  Most importantly, working with Majority Leader Daschle, Republican 
Leader Lott, Speaker Hastert, Congressman Gephardt, and Senators Hatch, 
Kohl, DeWine, Schumer, and Clinton, we have established a Victims 
Compensations Program to provide expedited payments to victims and 
their families. To be eligible for compensation, applicants will need 
to provide information about the harm they suffered or death linked to 
the terrorist attack, but they will not be required to prove negligence 
or liability. It is our responsibility to provide fair compensation to 
those most affected by this disaster. We have devised a plan that means 
prompt filing, quick review, and prompt payments to victims and 
families.
  The Department of Justice will supervise the Victims' Compensation 
Fund that will be administered by a Special Master. The Special Master 
will make a final determination of an applicants eligibility and level 
of compensation within 120 days of receiving a claim. All payments must 
be paid within 20 days after the determination. This is a simple and 
fair approach to put the victims and their families first. These 
payments will be tax free. Filing a claim under the program will 
preclude other civil remedies.
  This program is targeted to help the neediest victims and their 
families. When making a determination, the Special Master will take 
into account any life insurance, death benefit, or other government 
payment received by the victims and their families.
  The victims in this tragedy and the airline industry are in need of 
relief. The terrorists will win if victims continue to suffer and the 
airlines go under. Establishing the Victim Compensation Fund and giving 
the airlines the capital they need to continue operating are crucial 
first steps in our national healing process. I thank the leadership of 
both parties in both Houses of Congress for their cooperation in moving 
this essential legislation forward.
  Madam President, again, the heart of every American aches for those 
who have died or have been injured because of the terrorist attacks in 
New York, Virginia, and Pennsylvania on September 11--and due to the 
ripple effect out to New Jersey and Connecticut and Maryland and the 
District of Columbia. It has been terrible. I think we have to ensure 
that the needs of those who suffered most directly are met, that they 
receive adequate compensation.
  We also know that the airline industry in the country is in danger of 
collapse. They have announced, I believe, around 100,000 layoffs. 
Insurance companies reportedly have contacted airlines saying they will 
lower terrorist-related protections in their policies. They have said 
they are not going to be able to pay their bills. If we don't do 
something, we can literally see the terrorists shutting down the 
airlines next week. We have worked with Senators Daschle and Lott, 
Speaker Hastert and Congressman Gephardt, Senators Hatch, Kohl, DeWine, 
Schumer, and Clinton, and we put together a victims' compensation 
program to provide for victims and their families. It is going to be 
simple. It is a speeded-up process. In fact, the payments will be tax 
free, with prompt filing, quick review, and prompt payments to victims 
of families. We literally had children who kissed their parents good-
bye in the morning and came home at night and found that they were 
orphans, and the mortgage is due in 2 weeks. We have to do something to 
help them. We can.
  The victims in this tragedy are in need of relief. The airline 
industry is in need of relief.
  The terrorists will have even a greater victory if we do not help. We 
can help.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. ROCKEFELLER. Madam President, I yield 10 minutes to the senior 
Senator from West Virginia.
  The PRESIDING OFFICER. The senior Senator from West Virginia has 15 
minutes of his own time under the agreement.
  Mr. ROCKEFELLER. Madam President, I revise my statement simply to say 
the senior Senator from West Virginia has 15 minutes under the 
unanimous consent agreement.
  The PRESIDING OFFICER. The senior Senator from West Virginia.
  Mr. BYRD. Madam President, the distinguished majority whip wishes me 
to yield time to him. How much time does he need?
  Mr. REID. Three minutes.
  Mr. BYRD. I yield 3 minutes of my time to the Senator.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. REID. Madam President, I received a letter, as did all Senators, 
today addressed to the Honorable Tom Daschle, majority leader, and the 
Honorable Trent Lott, minority leader, of the U.S. Senate. The letter 
reads as follows:

       Dear Senators: The Association of Trial Lawyers of America 
     (ATLA) commends the United States Congress and President Bush 
     for their leadership and decision to put families victimized 
     by our national tragedy first and to ease their pain by 
     expediting appropriate relief to them through the ``September 
     11th Compensation Act of 2001.''
       ATLA agrees with you that extraordinary situations demand 
     extraordinary response.
       At least seven thousand families are hurting more than any 
     of us can imagine. And, because the first priority of every 
     American should be prompt and full justice for the thousands 
     of families who know first-hand the unspeakable horror 
     visited upon the world on September 11, 2001, members of

[[Page S9600]]

     ATLA will provide fine legal services to any family wishing 
     to pursue justice through the fund established by this 
     unprecedented, humanitarian legislation.
       ATLA believes that 100% of the compensation from the fund 
     should go directly to these families.
       The officers and Executive Committee of ATLA have 
     volunteered to be the first attorneys to provide legal 
     services free of charge under this program.
       God Bless America.
           Sincerely,
       Leo V. Boyle, President, on behalf of the 60,000 men and 
     woman of ATLA.

  The PRESIDING OFFICER. The Senator from West Virginia.
  Mr. BYRD. Madam President, the bill currently before the Senate 
provides $5 billion in immediate direct cash assistance to the airline 
industry. It also provides up to an additional $10 billion in loan 
guarantees for the airlines. This bill is not simply an authorization 
bill. It is also an appropriations bill which provides funding over and 
above the $40 billion Emergency Supplemental Appropriations Bill that 
the Senate passed one week ago today.
  The airline industry is essential to this Nation's commerce. It 
produces about $125 billion annually and creates work for thousands of 
manufacturers and other companies. The Federal Government cannot allow 
this industry to fold without seriously disrupting the United States 
economy. That fact is not lost on this Senator.
  However, we have now reached an important turning point in the 
relationship between the Federal Government and the airlines, and this 
should not go unnoticed. As of this day, the airlines are now required 
to live off the generosity of the general treasury. We are about to 
grant them several billion dollars of assistance, not from the Aviation 
Trust Fund, not from any ticket taxes from airline passengers, but from 
the general treasury. We are talking about money from people's income 
taxes, including the income taxes of millions of Americans who did not 
board a plane last year, who will not board a plane this year, and who 
will not board a plane next year perhaps.
  Twenty-three years ago, the Senate passed the conference report on 
the airline deregulation bill on October 14, 1978 by a vote of 82-4, I 
believe. I was Majority Leader at the time. I was among the 82 Senators 
who voted for that bill. And as I have mentioned on the Senate floor 
many times, I have regretted that vote ever since.

  My colleague at that time was Jennings Randolph. Jennings Randolph 
voted against deregulation. I voted for deregulation. He voted the 
right way at that time, and I voted the wrong way. I regret that vote 
because ever since deregulation, numerous airlines have pulled out of 
West Virginia and other rural states altogether. Many of them pulled 
out immediately following the vote. My constituents and millions of 
other Americans who live in smaller communities have been left with 
infrequent air service at astronomical prices. Indeed, today, it is 
often cheaper to fly from Washington D.C. to London, England, than it 
is to fly from Washington D.C. to Charleston, WV. The quality and cost 
of service to many of our smaller airports in West Virginia and across 
the Nation are even worse.
  Yesterday, as part of a Transportation Appropriations Subcommittee 
hearing with Secretary Mineta, I expressed my view that we should not 
be providing the airlines with billions of dollars from the income 
taxes of hard working Americans without requiring the air carriers to 
provide a reasonable level of service to those Americans. Now that this 
industry must live off the generosity of the U.S. taxpayer, at least 
for a while, I think we have a responsibility to ensure that the 
taxpayers are well served. But today, we find that the airlines are 
cutting back service and eliminating cities from their national network 
at the same time they have their hands out on Capitol Hill.
  I recognize that the airlines find themselves in such precarious 
financial condition because of a recent tragedy of massive proportion. 
However, the airlines were not doing so well before that time. I am 
determined to make sure that the airlines do not use this incident as a 
rationale for abandoning or dramatically reducing service to 
communities that depend on that service to connect with the national 
economy.
  Toward that end, I want to call the attention of the Senate to a 
critically important section of the bill. Under this bill, the 
Secretary of Transportation is granted broad new statutory authority to 
require an airline that receives direct financial assistance under this 
act to continue to provide service to any city that it was serving 
prior to the tragedy of September 11.

  The bill also grants the Secretary the authority to require any 
airline taking assistance under this act to enter into agreements to 
ensure that all communities that had scheduled air service before 
September 11 continue to receive adequate air service.
  These provisions, if applied appropriately, will ensure that the 
small cities and the rural airports of America are not cut off from our 
national aviation system as the industry endures a downturn. The 
Committee on Appropriations, which I chair, will monitor carefully how 
Secretary Mineta implements these critically important provisions. He 
has been granted important new powers in this time of crisis, and I 
expect him to use these powers. The committee will also monitor 
carefully the actions of the airlines when it comes to discontinuing 
routes and reducing service. We must see to it that the small 
communities of our country are not relegated to the status of an 
economic backwater as the jets keep flying from New York to Los Angeles 
to London and to other far away ports.
  I understand there are discussions that additional Federal assistance 
may be needed for the airlines in later bills. The airlines should be 
on notice and the Department of Transportation should be on notice that 
if the provisions in this bill are not applied appropriately, and we 
see a pattern wherein the small communities of our Nation are not being 
treated fairly, we will be back with stronger legislative measures to 
address this problem. This issue will not go away with the passage of 
this bill.
  As we stand poised to hand the airlines billions of dollars in 
general revenue tax dollars, we must ensure that taxpayers in all 
communities, small and large, have access to reasonable and affordable 
air service. During this time of national crises--during a time of 
war--we should require that there will be air service to all parts of 
America to ensure that there is mobility for all Americans.
  I want to thank my colleague, Senator Rockefeller, for the leadership 
he has demonstrated in this area of legislation. He has done a great 
piece of work. He is highly dedicated to the service of his 
constituents, who are my constituents, but in thinking of our 
constituents we are also thinking of Americans across this country who 
live in rural areas and who have been deprived of fairness in service 
and in connection with costs in flying.
  I yield back the remainder of my time.
  The PRESIDING OFFICER. Who yields time?
  Mrs. HUTCHISON. Madam President, I yield 2 minutes to the Senator 
from Alabama, Mr. Sessions.
  The PRESIDING OFFICER. The Senator from Alabama.
  Mr. SESSIONS. Madam President, I appreciate the work of our 
leadership in this Senate working together to produce legislation that 
each day, since this tragedy occurred, we have been virtually unanimous 
on. I want to keep that unanimity going. I express my appreciation to 
Senators Daschle, Lott, Nickles, Reid, and the others who have worked 
on this legislation. I know there is a belief that there is a critical 
time period, and apparently there is, an insurance problem of 
monumental proportions that needs to be dealt with promptly.
  However, I do believe, as Senator Fitzgerald from Illinois has said, 
we are rushing this matter, that this bill is not a perfect bill. It is 
far from a perfect bill. Maybe it is approximately correct, but we do 
not know all of that yet. I am not happy with how fast this is moving 
and how much money we are dealing with. I want to support our 
leadership. I know they have hammered it out. I know they have made 
some progress. I know they have made some agreements. I know Senator 
Nickles has worked hard to bring as much accountability as he could in 
the time he had to make this a reality. So I salute them for it, but I 
am not convinced we are doing it the right way.
  I was pleased to see trial lawyers say they would do work for free, 
but I am

[[Page S9601]]

not sure that, in the way we have crafted the bill, a client still does 
not need a lawyer that is loyal to them and that is paid by them. I 
would like to see us create a way to compensate people simply by who 
they are. If they are the widow of a person who has lost his life, they 
can make a claim and certify that and get their payment without any 
fees needing to be paid. Maybe we could do that in this kind of mass 
tort. We have not had time to think that through.
  I know this bill is probably moving on to passage tonight. I am 
troubled by it. We are going to need to do some work on it in the 
future, and I expect we will be coming back and revisiting this. I 
think that should be made clear.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  The Senator from Texas.
  Mrs. HUTCHISON. I am going to finish our 30 minutes of time by saying 
this is not a perfect bill. There are areas we have not addressed but 
that we will address in the future. Since September 11, 2001, a lot of 
things have been thrown at us, and we are going to handle every one of 
them as they come. We will keep the airlines flying. We will try to 
minimize the damage to the economy of layoffs from the airline industry 
and all the other people who are laid off from their jobs. We will take 
it one step at a time.
  Senator Rockefeller and I have worked hand-in-hand on this issue and 
on the security issue that we will have on the floor next week or the 
week after, because security is what will make the flying public feel 
safe in our skies. So we are going to address this issue and keep the 
airlines financially secure in the interim period while we are getting 
that security bill passed so America will not be in any way hampered in 
our freedom and our ability to have commerce and business as usual in 
our country. That is what we are all trying to accomplish.
  I yield back the remainder of my time.
  The PRESIDING OFFICER (Mrs. Lincoln). The Senator from Oklahoma.
  Mr. NICKLES. I yield to the Senator from West Virginia.
  Mr. ROCKEFELLER. I commend the majority leader for his hard work in 
putting together an airline stabilization bill that will save our 
nation's airlines and our air transport infrastructure. I will strongly 
support this bill without amendment.
  The terrorists who launched those despicable attacks on September 11 
took thousands of American lives, and did billions of dollars of 
damage. It has also become clear in the past 10 days that they dealt a 
body blow to the U.S. airline industry, on which virtually all of our 
citizens depend to one degree or another.
  Demand for air travel has virtually collapsed in the past week. Last 
weekend I flew back to West Virginia, and on the return flight Sunday 
night--usually a crowded flight from Charleston to Dulles--I was the 
only passenger on the plane. Many of my colleagues have mentioned that 
they've had similar experiences in the past ten days. Flights are 
departing West Virginia airports with a load factor of 25 per cent--
only one in four seats filled. Unfortunately, this is not, like last 
week's closure of the New York Stock Exchange, a temporary phenomenon. 
Based on past air disasters or international conflicts--none of which 
was of the same massive scale as last Tuesday's attacks--airlines are 
predicting that passenger traffic will be down by almost half for the 
remainder of this year, and will take until next summer to return to 
normal levels. And those are optimistic estimates.
  This kind of crisis could do irreparable harm to the ability of 
America's airlines to continue in business. Airlines lost $300 million 
each day that they were shut down last week. They are set to lose 
billions more in the coming months. Their insurance rates have shot up, 
with some airlines telling us of a 600 percent increase in their 
insurance rates. Coming on top of what was already a difficult outlook 
because of our slowing economy, the nation's airlines--main line 
carriers and regional carriers alike--could be in bankruptcy within a 
few weeks and possibly out of business within a few months. Already we 
are seeing the first signs: a round of massive, painful layoffs for 
nearly 100,000 of our nation's hardworking airline employees. And huge 
cutbacks of around 20 percent to most airlines' schedules.
  Some people have said, well, this is the market, and it's not the 
American way to interfere with the market. But I've been pleased, as 
chairman of the Senate's Aviation Subcommittee, to see a broad 
consensus among my colleagues that the air transport industry is not 
just a huge business and employer, but it's also a critical element of 
our nation's infrastructure. Nowhere is that more the case than in the 
smaller states and communities like West Virginia. When people think of 
the airline industry, they usually think of big hub airports like 
Hartsfield and O'Hare. But airline traffic is just as important--maybe 
more important--to smaller communities like Beckley and Bridgeport. 
Safe, convenient and affordable air service represents an important 
element of our efforts to attract development to our state. It's an 
important connection that allows our citizens and our businesses to 
overcome our state's historic isolation created by our mountainous 
terrain.
  And when I see planes flying with one passenger, and learn that 
carriers are cutting back on their schedules, and hear that several 
carriers could be in bankruptcy within two weeks, I know that the first 
communities to be hit will be small communities like those in West 
Virginia that are at the end of the food chain, so to speak. That would 
be tragic. It would reverse the efforts our communities have made to 
attract and retain air service, and turn their residents into aviation 
``have nots.'' It would also set in motion the slow implosion of the 
U.S. airline industry, which would spread to larger hubs and airports 
as well. And finally, it would give the terrorists who perpetrated last 
week's heinous attacks the ultimate victory, as their actions would 
lead to a severe curtailment of America's freedom of movement and 
mobility.

  It is the shared consensus of this body that cannot be permitted to 
happen, and that has driven our remarkable efforts this past week to 
put together a stabilization package for our nation's airlines.
  It will contain up to $5 billion in immediate credits to reimburse 
airlines for the revenues they lost when the government shut down U.S. 
air space last week. It will also contain $10 billion in loan 
guarantees so that our airlines can continue to obtain financing in the 
coming months.
  It will limit airlines' liability for collateral damage incurred as a 
result of last week's terrorist attacks up to the amount allowable 
under their insurance policies--a key provision because our airlines 
might otherwise not be able to obtain or afford insurance.
  It will set up a victim's compensation fund for the families of the 
innocent victims of last week's despicable attacks.
  It will provide $120 million in additional authorization authority 
for the Essential Air Service program, a key element in preserving air 
service to smaller communities.
  This package is an important first step in stabilizing the U.S. 
airline industry and ensuring that air service to communities across 
the nation survives this crisis. But it does not address all the needs 
that this crisis has created.
  One important issue we will need to take up in short order is the 
plight of the nearly 100,000 airline workers who will lose their jobs 
as a result of this week's cutbacks. We have already begun to see 
airline layoffs in West Virginia. Excellent workers who expected a 
promising career in a growing industry, until terrorists hijacked four 
planes and frightened Americans out of the skies. We must take measures 
to address their needs. We provide special assistance to American 
workers who have been displaced by foreign trade; we must provide the 
same level of assistance to American workers who have been displaced by 
foreign terrorism.
  We must also be prepared to look at the needs of related industries, 
as well as the future needs of the airline industry. Many related 
industries--aircraft manufacturers, travel agents, and various travel-
related businesses--have already begun to feel the effects of this 
attack. We will have to look carefully at the real needs of those 
industries, and be prepared to take bold measures where they are needed 
and appropriate.

[[Page S9602]]

  One thing is certain: the survival of America's airlines is a key 
element of any solution. Their needs are real and urgent, and I 
congratulate the majority leader on his success in putting together a 
stabilization package that will address them.
  The PRESIDING OFFICER. The Senator from Oklahoma is recognized.
  Mr. NICKLES. I thank the Chair.
  (The remarks of Mr. Nickles pertaining to the submission of S. Con. 
Res. 73 are located in today's Record under ``Submission of Concurrent 
and Senate Resolutions.'')
  Mr. NICKLES. Madam President, I have worked with some of our 
colleagues on the underlying bill that deals with assisting the airline 
industry to try to make a significant and positive impact, and I 
compliment both Democrats and Republicans, because we have worked 
together, and I think we are passing a bill tonight that will provide 
needed assistance to the airline industry.
  This bill has several provisions some of our colleagues are somewhat 
familiar with, some maybe not, but it has a provision that provides for 
$5 billion in cash assistance. Some people said that is too much. 
Actually, last Friday we were looking at a bill that was two and a 
half. The airline industry generates revenues of about $2 billion per 
week, and this bill provides $5 billion. Well, they were shut down for 
2\1/2\ days, but certainly when they started again they had significant 
losses, and this $5 billion is an attempt to offset the losses that 
will be incurred not only for the shutdown but for the resumption of 
service, and that is for the time period from September 11 through 
December 31.
  Also, there are losses that have to be incurred. I would love to see 
ridership come up to a very full volume in a very short period of time 
and maybe that $5 billion would not be necessary. In all likelihood it 
will be. The legislation also provides for $10 billion of loan 
assistance. Some people have asked for details, but we left the 
regulations up to OMB, and some people have disputed whether it be cost 
share, whether it will be a guaranteed loan amount.
  When we did the steel loan guarantees, that this Senator did not 
support but we put a percentage must be required, the Federal 
Government did not guarantee 100 percent. The Federal Government 
guaranteed up to a percentage, and I hope that would be the case in 
this bill. So it would not be a 100-percent Federal loan guarantee but 
up to 80, with those regulations to be determined by the Office of 
Management and Budget. They have 15 days to do so from date of 
enactment.
  The legislation also has about a page and a half, or two pages, 
dealing with essential air service. It is my thought that should not be 
in the legislation, and it is because Senator Byrd and Senator 
Rockefeller and others wanted to have it and said the Secretary should 
make efforts to endeavor that communities that now have assistance in 
Federal air service would continue to receive it. In my opinion, it 
should not have been put in, but it is in and I am not that upset. It 
does give some discretion, but in some of these communities we have 
airplanes flying with two or three people on them and they cost a lot 
of money. They cost the airlines and taxpayers a lot of money, and I 
question whether we should mandate that it continue.
  The language we have in the bill is less than a mandate. It does have 
some discretion, so hopefully common sense will prevail. That is not a 
particularly big provision.
  Most importantly, the bill does provide some limitation on 
liabilities for the air carriers. If we did not have that, they 
probably would not be able to buy insurance. They probably would not be 
flying in a month. We did not want that to happen so we did put some 
liability protection, some limitations there. Carriers would be liable 
on September 11. The limitations for liability will be for the amount 
of insurance they have. So that was pretty well agreed upon.
  The prospective liability, where the Government would assume 
additional liability if there were another act of war or terrorism, was 
pretty well agreed upon.
  We also passed legislation, and it begins on page 19 and goes through 
page 30 in this legislation, called victims' compensation. It basically 
says that victims and/or their family survivors, people who were killed 
by the terrorist act of September 11, may receive financial assistance 
or at least have legal recourse. They can do it either by suing in a 
Federal district court or they can do it through a new system we are 
now creating in this legislation called the special master.
  It was my hope this would not be included in this legislation, that 
we would defer it until we had a little more time to study it. This is 
very complex law. It deals with the State of New York law, it deals 
with Federal law, it deals with liability, and the liability of not 
only the airlines but also the building, the port authority, and other 
individuals and governments. It is very complicated and very complex.
  Although I think the committees and the other people who worked on it 
did a pretty good job, the special master has enormous responsibility 
under this legislation, to be making determinations on what family 
survivors will receive, what injured members and individual will 
receive.
  I am not against having a victims' compensation section, but when we 
put this together in a short period of time, I am not sure we did it 
the best way. I am not trying to be critical, and I have assurance from 
proponents of this, as late as last night: If we find it is in error 
and it needs adjustments, we will revisit it. I compliment my 
colleagues because we have operated in a bipartisan spirit, and we 
should continue to do so. That is vitally important. We did it last 
week; we did it this week.
  Some people said we want to rewrite unemployment compensation laws 
and make everybody whole on unemployment compensation because of the 
airline employees, because of restaurant employees, et cetera. We have 
to be cautious. The unemployment compensation system can be enormously 
expensive. We have an unemployment compensation system providing 
benefits in most cases for 26 weeks. I don't know that has such urgency 
we need to address it in the next week. Some said we need to do this 
next week. Almost everyone in every State of the Nation has 
unemployment compensation that will last at least for 6 months.
  We have made good progress in providing stability for the airlines. 
They will be able to buy insurance; they will be able to continue 
flying. We provided cash assistance and provided loan guarantees to get 
them through, bridging this very difficult time as a result of the 
terrorist act and tragedy that happened on September 11.
  I encourage my colleagues to vote in favor of this legislation.
  For the information of our colleagues, a lot of people are wanting to 
get out of town. It is my intention to yield back the remainder of time 
and commence the rollcall in a very short period of time.
  Mr. ROCKEFELLER. Madam President, the Senator from the State of 
Oregon has up to 5 minutes.
  Mr. WYDEN. In a few hours the U.S. Congress is going to respond to 
the horrible tragedy in New York in an unprecedented way. The U.S. 
Congress is going to vote to send billions of dollars to the airline 
industry, while not making any funds available to the scores and scores 
of other businesses across this country affected by this tragedy that 
also teeter on bankruptcy.
  The process that the U.S. Congress is using is also unprecedented. 
The number being used to send these billions of dollars of taxpayer 
money to the airline industry comes from the airline industry itself. 
There has not been an independent, third party review of the numbers 
and the projections on which this legislation tonight is based. It is a 
leap of faith. The Congress tonight is responding to the airline 
industry's assertion that because this tragedy is so dire and the 
circumstances so enormous, we should waive the traditional process of 
saying that someone independent should evaluate a piece of legislation 
such as this involving billions and billions of dollars.
  But it is also unprecedented, the horror and the tragedy that the 
Congress must address. Tonight, in what has been one of the hardest 
decisions I have had to face, I am going to vote for this legislation 
because of one addition that has been made, and I am pleased to 
announce it tonight. Senator Daschle, the majority leader, has worked 
so hard on this legislation; Senator Hollings, chairman of the Commerce

[[Page S9603]]

Committee, has done yeoman work on this bill; Congressman Doggett; and 
a variety of Members have indicated they expect the General Accounting 
Office to give a briefing to the U.S. Congress by September 28 on this 
legislation.

  I make it clear tonight, if it appears on September 28 or in the days 
that succeed that briefing that this legislation was in excess of what 
the airlines needed, I am going to come back on this floor and do 
everything in my power to send this money to the scores of other 
businesses across this country that teeter on bankruptcy tonight. This 
is unprecedented, first, because of the tragedy; second, because one 
class of those affected in the airline industry is receiving help while 
others are not; and third, because there has not been an independent 
analysis of what the claims actually constitute and what funds are 
truly needed.
  Because the circumstances are so dire, the Congress is going to vote 
for this legislation over the next few hours. I want the Congress to 
know, that briefing on September 28 will be critical because it will be 
our first chance to get an objective analysis of whether the industry 
needs this sum of money and needs it for the claims that are being 
made.
  I wrap up by saying in my view Senator Rockefeller and Senator 
Hutchison have done a first-rate job on this legislation. This is, as 
we all know, just the beginning of the debate about how to deal with 
the financial consequences of the horror in New York, but it is a 
particularly difficult choice the Congress is making tonight. I assure 
my constituents and others who are following this debate that the way 
this money is going to be spent is something that is going to be 
scrutinized with as much care as any subject that has ever come before 
the U.S. Congress.
  I yield the floor.
  Mr. REID. Madam President, it is my understanding that all time is 
going to be yielded back on this matter.
  Mr. ENZI. I rise to make a few remarks concerning the Air 
Transportation System Stabilization Act.
  First, I would like to associate myself with the comments by the 
Senator from Alabama, Mr. Sessions and the Senator from Oklahoma, Mr. 
Nickles.
  I know we need to take immediate action to keep the airline industry 
in the air. The last few days have taught us that air travel is the 
heart of our economy. Many businesses have been hurt by the events last 
week. I am disappointed that help has not been offered particularly to 
the small businesses. But I realize that those businesses will be out 
of business if air travel ceases or is greatly reduced. Airlines are a 
lifeline for many occupations.
  This morning I had many concerns about this bill. I am pleased that 
many of my suggestions were taken and now appear in the bill. Other 
parts of this bill can and must be reworked in the days to come.
  I am pleased at the recognition that will assure essential air 
service, help to airlines that serve small, rural communities 
throughout the nation.
  I am pleased that we remembered the regional air carriers and 
proportionally helped them.
  I understand the reluctance of the insurance companies to continue to 
insure air carriers, because of the uncertainty of the exposure, so I 
am pleased that an insurance provision was provided.
  I am pleased that provisions were put into the bill that would remove 
concern and provide assurance that the grant money will not be golden 
parachutes for highly paid executives.
  I know the bill now has provisions for audits to be sure the money is 
spent within the criteria set out. I would feel more comfortable if the 
audits were mandatory instead of optional. Taxpayer money always comes 
with strings.
  I understand the need for expediting compensation to victims, but I'm 
not sure that we have done that. Perhaps we have just opened up a trial 
lawyer's dream. I have been assured that section will be reworked to 
give assurance that the money will go to the victims and not just to 
attorneys, and that the taxpayer won't be the one providing all the 
compensation. I had hoped that the Federal obligation would be 
available only for those who took the expedited avenue of resolving 
their loss using the Special Master.
  I applaud my colleagues and the Administration in expediting aid to 
the nation's airlines under this bill for damages arising out of the 
September 11, 2001 terrorist attack. This initial funding will provide 
the resources necessary to assure continuity and stabilization of the 
airline industry. By including direct cash assistance, loan guarantees, 
increased air transportation safety, and prospective and prior 
liability provisions, the bill will ensure the safety of the American 
public and restore confidence in our economic foundations. The 
provisions of this bill are designed to restore the confidence of 
airline customers and industry investors and provide a bridge of 
assistance to the new environment in which the industry will need to 
operate.
  I am pleased that the bill states that the U.S. Department of 
Transportation Secretary should take appropriate action to ensure that 
all communities, both rural and urban communities, that had scheduled 
air service before September 11, 2001, continue to receive adequate air 
transportation service and that essential air service to small 
communities continues without interruption. In addition, the bill 
authorized an appropriation of $120 million for the Essential Air 
Service program. This additional funding in the EAS program will 
greatly benefit the rural communities in Wyoming.
  Resumption of normal air travel is essential for our commerce and the 
mobility for our way of life. We have to act to keep our airlines 
flying without throwing the free market out of the window. These 
businesses need to show that their requests for assistance are tied to 
the recent terrorist attacks and not debts incurred prior to September 
11, 2001. They also need to show that the financial assistance they 
receive will be used wisely, keeping their planes flying and their 
employees working.
  I believe that the airlines should submit a business plan to the U.S. 
Department of Transportation to justify why they need the grant funding 
and loan guarantees and what the funds will be used for. Within the 
business plan, the airlines should state specific provisions that 
executive management of the airlines should not receive pay increases 
greater than the cost-of-living adjustment and they should not receive 
any bonuses due to the funding allocated to them by this bill. I 
believe this emergency funding for the airlines should help all airline 
employees, not just the executive management.
  I have been assured there will be specific criteria when directing 
federal funding to the airlines in the form of a loan guarantee. For 
example, the bill gives the President the authority to issue the $10 
billion in loan guarantees to the airline industry subject to terms and 
conditions as he seems necessary. We must assure there is no abuse and 
that the bill protects the federal government who is the U.S. taxpayer 
from incurring costs from the possible defaulting on the loans.
  Traditionally, loan guarantee programs ensure that the General 
Accounting Office, GAO, can exercise its authority by auditing the 
business that receives a loan guarantee. The administration should 
include a provision that mandates the GAO act as the auditor of this 
loan guarantee program. At present, an audit may be conducted by the 
GAO and U.S. Department of Transportation if the Comptroller General 
and Transportation Secretary deem necessary. We have to ensure that the 
funds are spent accordingly in relation to the intended purpose of this 
bill.
  Furthermore, the bill should more directly address the higher costs 
incurred by commuter and short-haul carriers and issues arising from 
recent changes in air transportation availability to small- and medium-
sized communities. These regional airlines provide the only air service 
between the major airports and the more than a hundred small- and 
medium-sized communities in the West.
  I am committed to supporting an economically strong airline industry 
for the West and the nation. Due to last week's tragic events, we have 
realized that interdependence is key to keeping our economy strong, if 
planes are flying, then the motels are being occupied and the 
restaurants are being utilized. I look forward to supporting my 
colleagues in restoring public confidence in the fact that the United

[[Page S9604]]

States has the strongest and safest airline system in the world.

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